The U.S. pay czar is clashing with American International Group Inc. over $243 million in retention bonuses, potentially sparking a showdown over the insurer’s compensation practices.
Kenneth Feinberg, the Treasury Department’s special master for compensation, has told AIG it should reduce $198 million in promised payments for 2010 and recoup $45 million already paid in 2009. The demands were made public in a report from Neil Barofsky, the special inspector general overseeing the government’s bailout.